Crypto markets are bleeding out, with a staggering $6.4 billion fleeing Exchange-Traded Products in just five weeks – the longest negative streak since 2015. U.S. investors led the panic, accounting for 93% of withdrawals. Bitcoin took the biggest hit at $5.4 billion, while Ethereum hemorrhaged $175 million. Yet amid the chaos, XRP swam against the current, attracting $1.8 million in fresh capital. The full story behind this crypto exodus reveals some surprising twists.
While the crypto market has long been known for its wild swings, the latest exodus from crypto ETPs is something else entirely. Investors have yanked a staggering $6.4 billion from crypto exchange-traded products over five straight weeks – the longest negative streak since CoinShares started keeping tabs in 2015. Yeah, that's billion with a B.
Wild crypto swings are one thing, but $6.4 billion fleeing the market in five weeks? That's next-level panic.
The bleeding is particularly severe in Bitcoin products, which hemorrhaged $978 million last week alone. That's contributed to a brutal five-week total of $5.4 billion walking out the door. Even BlackRock's shiny new iShares Bitcoin Trust couldn't escape the carnage. European provider 21Shares faced its largest weekly decline, losing $534 million in a single week. The lack of government backing makes these massive outflows particularly concerning for remaining investors.
Ethereum got hammered too, with $175 million fleeing ETH products last week. Solana and other crypto assets? They're also feeling the pain, just on a smaller scale.
American investors are leading the great crypto escape, responsible for a whopping 93% of total outflows. The U.S. alone pulled $1.16 billion last week, with Switzerland and Sweden following suit. A few brave souls in Germany, Brazil, and Australia are still buying in, but they're swimming against a powerful tide.
But here's where things get interesting. While everyone else is running for the exits, XRP is actually attracting money. The controversial cryptocurrency pulled in $1.8 million last week, pushing its monthly inflow to $7.4 million. Not exactly earth-shattering numbers, but when everything else is going down in flames, even modest gains stand out.
Despite this mass exodus, the year-to-date numbers aren't completely terrible. Crypto investment products are still up $912 million for 2024, though that's cold comfort given recent events. Binance's assets plummeted to just $15 million last week after a major seed investor pulled out.
U.S. investors, despite their recent panic, are still net positive for the year at $787 million. But with five straight weeks of outflows and no clear end in sight, those positive numbers are looking increasingly fragile.
Welcome to crypto in 2024 – where "stable" is just a fancy word for "hasn't crashed yet."
